HeidelbergCement's group revenue improves by 4% to EUR4.8bn in 2Q18

HeidelbergCement's group revenue improves by 4% to EUR4.8bn in 2Q18
31 July 2018

HeidelbergCement group revenue rose by four per cent in the second quarter to EUR4.8bn from EUR4.6bn in 2Q17. However, negative currency effects of EUR226m had an adverse impact on revenue. Adjusted for currency and consolidation effects, revenue increased by nine per cent due to sales volume growth in all business lines and successful price increases.

In the second quarter, the group's cement and clinker sales volumes rose by three per cent to 33.7Mt, up from 32.6Mt in 2Q17. Adjusted for the disposal of the white cement business in the USA, the deconsolidation of Georgia and the acquisition of Cementir Italia, the growth rate amounted to four per cent and all group areas contributed to this increase, reported HeidelbergCement.

Deliveries of aggregates rose by five per cent to 85.7Mt from 81.4Mt in 2Q17. With the exception of Africa-Eastern Mediterranean Basin, all group areas recorded increasing volumes. Adjusted for consolidation effects, growth amounted to four per cent.

Deliveries of ready-mixed concrete increased by four per cent to 12.7Mm3, up from 12.2Mm3 in 2Q17, with all group areas recording a volume growth. Asphalt sales volumes improved considerably by 18 per cent to 2.9Mt up from 2.4Mt owing to the positive development of demand in the UK and in California. Consolidation effects in the northwest of the USA and Australia also contributed to the improvement. Excluding consolidation effects, the increase amounted to nine per cent.

"The solid development of results in the second quarter indicates a positive trend reversal after a weather-related difficult start of the year,” says Dr Bernd Scheifele, chairman of the Managing Board. "The growth of revenue and sales volumes in all business lines reflects the strong market dynamics. All in all, we could significantly improve the profit also in the second quarter. The strong operational development, lower restructuring charges and a further reduction in financing costs more than compensated for the increasing cost inflation and negative exchange rate effects. We expect the business development to further improve in the second half of the year and confirm our outlook for 2018."

"With the positive underlying market dynamics, we’re confident about 2018," Dr Scheifele continued. "HeidelbergCement is globally well positioned for sustainable and profitable growth. We are on track to meet our strategic goals: to achieve continuous growth, create long-term value for our shareholders, and safeguard high-quality jobs."

Published under Cement News